Bernard J. Durkan
Question:92 Mr. Durkan asked the Minister for Agriculture and Food his long term plans for the future of the cereal growing industry; and if he will make a statement on the matter. [15105/04]
View answerThursday, 20 May 2004
Questions (92)
Written answers
In the CAP reform negotiations, which culminated in the Luxembourg Agreement last June, Ireland's objectives for the cereals sector were achieved. The proposed reduction of 5% in the pre-Agenda 2000 intervention price for arable crops was withdrawn, and the original proposal for ten year obligatory non-rotational set-aside, which would not have been suitable in the Irish situation, was also dropped. The decision to leave the basic intervention price unchanged will help protect the sector from cheap imports, as the cereals import price is related to the intervention price.
Under the reformed CAP, Irish cereal farmers will have the cushion of the single farm payment decoupled from production as and from 1 January 2005, and will be able to concentrate on supplying markets, focusing on minimising production costs and maximising their incomes. Improved efficiency of production at farm level will be important to maintain incomes, and to ensure that the volume of output is maintained to support the processing sector. Average grain production in the country over the past number of years has been in the region of 2,000,000 tonnes and the aim is to maintain this level of production in order to avoid over dependence on imported grain.
My Department continues to operate a range of services aimed at improving the efficiency, quality and viability of cereal production. These services include seed certification, seed testing, recommended lists of varieties, etc. In addition, Teagasc provides comprehensive research, training and advisory services for cereal producers. The value of all these support services is reflected in the fact that Irish cereal producers have consistently achieved some of the highest yields in the world. I am satisfied the outlook for cereal growing in Ireland is positive and Irish cereal producers are well positioned to meet the competitive challenges ahead.